Experts predict that this year, the absorption area of the entire industrial real estate market will be higher than last year, showing the recovery of demand.
According to records, the operating situation is positive, especially in the type of industrial land and factories with diverse demand sources. In the next two years, industrial land rental prices are expected to increase by 6 - 10%/year in both the North and the South.
Positive demand comes from many industry groups and many tenant nationalities, helping to boost rental price growth in many localities.
According to CBRE Vietnam Co., Ltd., in the southern industrial real estate market, the average occupancy rate in industrial parks reaches 81.9%. The absorption rate of industrial land in the third quarter reached more than 190 hectares, an increase of 5.9% compared to the previous quarter.
Overall, in the first 9 months of 2023, it will reach more than 770 hectares, 20% higher than the whole year 2022.
Regarding rental prices, the average industrial land rental price in tier 1 markets in the South reached 189 USD/m2 / remaining term, continuing to increase slightly by 1% compared to the previous quarter and 13% higher than the same period last year. period last year.
The market recorded large transactions from Chinese and Japanese enterprises in a variety of industries such as mechanical engineering, chemicals, plastics, rubber, and electronics.
In the Northern region, the average occupancy rate of industrial parks in the primary market reached 80.2% in the third quarter of 2023, down 2.4 percentage points compared to the second quarter and up 0.4%. percentage points by year.
The quarterly decrease in occupancy rate comes from new industrial parks coming into operation in the Bac Ninh and Hung Yen markets, causing the total industrial land supply to increase by 597 hectares.
Regarding demand, the Northern industrial real estate market continues to record large transactions from tenants in the plastic, textile, and contact lens manufacturing industries in many provinces and cities.
In total for the first 9 months of the year, the absorption rate reached more than 700 hectares, 18% higher than the absorption rate of the whole year 2022. Industrial land rental prices continue to increase due to positive demand.
CBRE Vietnam said that the Southern and Northern markets respectively recorded 450,000 m 2 and 752,000 m 2 of new warehouses put into operation in the first 9 months of the year.
With abundant new supply, rental prices for warehouses and ready-built factories are relatively stable, with average rental prices reaching 4.5 USD/m 2 /month for warehouses and 4.9 USD/m 2 /month for warehouses. with factories in the southern market.
Ms. Trang Le - senior director of consulting and research, at JLL Vietnam - commented that the southern logistics market entered the last months of the year with positive signs of demand recovery, reflected in the rate of recovery. Net absorption of about 86,000m 2 was recorded.
Notably, the newly signed lease contracts are a continuation of scale expansion from existing manufacturers, 3PLs (logistics service providers), and e-commerce.
Domestic consumption continues to act as the main driver helping maintain market sentiment. Although new leasing activity still occurs in modern ready-built warehouses, the majority is to fill projects launched late last year or early this year.
Meanwhile, recently completed facilities, especially in relatively remote locations, still face high vacancy rates.
In fact, in the first 9 months of 2023, tenants from China, Japan, the US, and the European Union are investors actively looking for industrial land and warehouses in the Vietnamese market; accounting for about 70 - 80% of rental inquiries to CBRE Vietnam in the Southern and Northern regions.
With Vietnam continuing to strengthen cooperative relationships with comprehensive strategic partners such as the US, Korea and China, tenants from these countries are expected to continue to lead the way. driving demand for Vietnam's industrial real estate market in the coming time.
Ms. Pham Ngoc Thien Thanh, deputy director of CBRE Vietnam's research and consulting department, shared: "The main source of demand for ready-built factories comes from a variety of industries such as garments, pharmaceuticals, and electronics." ... Warehouse rental demand recorded an impressive recovery compared to the previous quarter, with large transactions coming from logistics businesses.
Regarding future trends, sustainable development, and high-tech trends continuously attract the attention of investors and businesses. Green criteria are gradually becoming one of the important criteria in the development of factories, warehouses, and workshops, promoting the development of green industrial parks in the future."